Possible 8 unit deal, help!

[Jose Botello]

An opportunity of purchasing 2 4-unit apartment buildings has presented itself.

Currently being rented at $630-$650 per unit ( low for the area) all 2/1.

The current owners have had this for 17 years but are getting too old to keep up with it and are asking $500k for it.

What are some things I should ask and also how do I introduce the idea of seller finance?  

[Jose Botello]

Quote from @Deon White:

@Jose Botello Based on quick math the 8 units just barely beat the 1% rule. Seller financing is a great strategy to close with less down with rates so high, we almost always ask for some portion of a note.

I would suggest framing it to the seller as asking them to carry the down payment. In my experience they are often more receptive to this phrasing. If you want to talk about partnership with capital partners for the remaining raise feel free to reach out sometime. Good luck.

As current rents stand, yes this barely beats the 1% rule. if we were to buy this, we would increase rent to market value which would be around $800-$900, which would put us closer to 1.2-1.4%. 

When i mentioned seller finance to the owners, the wife was very quick to say no and that she just wanted to "not have to deal with the units anymore" the husband had a different reaction and i could tell he was thinking about it but didnt say much else. they have 2 years left to pay on it and will be listing sometime next year.

our other approach would be to find out how these units would be appraised and decide if HML could be an option. with just quick napkin math, i dont see this as a good option but i also have never dealt with any of this.